It goes without saying that deciding to move is a major decision. No matter if you buy or rent, your home is one of the largest bills you have, meaning that you have to think long and hard about what you want to ensure that you make the right decision for you. If you’re caught between buying or renting, take some time to review the benefits of homeownership. You might be surprised by what you learn!
It may seem like paying rent and paying off a mortgage are similar一 you pay a monthly amount in order to continue living in or owning your home. However, what you aren’t seeing when you sign a lease is the potential for fluctuation and unpredictability in rent. Every time you re-sign that lease, there is a chance that your rent will go up. If you are on a month to month rental, the chances of rent increases become even more frequent. When you buy a house with a fixed rate mortgage, no matter if you are on a 15 or 30 year plan, the amount you pay each month will remain the same. When renting, you do not experience this kind of stability. When you own a home, your property may go up in value to reflect what is going on around it, but your home’s mortgage price will stay the same because of your fixed rate. This increase in value of your home creates “equity,” which you can use to take out a line of credit or loan to maintain and continually improve your living space.
Homeownership is a wonderful long-term investment being that it is a stable asset that usually grows in value. In fact, it has been continually rated as the best investment over stocks, gold and savings accounts for over nine years in a row. The longer you’ve been in your home, the higher your equity could be, which means that your net worth will have grown as well, and you could see a great return on investment when and if you sell your home one day. On the other hand, when it comes to renting, you do not see any return on investment for the property where you live, making it harder to grow your savings or prepare for a down payment on your future home. You’re putting money into the pockets of your landlord instead of benefitting yourself!
The housing market is currently in a state of fluctuation, still returning to normal after the 2020 pandemic. If you are considering buying a home, now is the perfect time to get in touch with a Shorewest, REALTOR®. More homes are hitting the market, fewer homes are selling above asking price, and there are fewer multiple-offer scenarios, making it a great time for you to begin the hunt for your dream home. Make your next big investment and look towards purchasing!